Litecoin's price failed to recover over $ 56.00 and fell against the US dollar. LTC / USD is now at risk of further losses below $ 52.00 in the short term
Key Talking Points
· The recovery of Litecoin's prices has failed near the resistance from $ 55.50 and $ 56.00 (Kraken data feed) against the US dollar.
· There is a large contracting triangle formed with a resistance close to $ 55.50 on the hourly chart of the LTC / USD pair.
· The LTC price is currently in difficulty below $ 56.00 and may fall further below $ 52.00.
Litecoin Price Forecast
Yesterday, there was a slight upward variation in the litecoin price above the $ 54.00 level against the US dollar. The LTC / USD pair traded for resistance levels $ 55.50 and $ 56.00 against selling interest
Looking at the chartthe LTC price attempted a bullish recovery above the $ 55.00 level and a 100-hour simple moving average. The price also exceeded the 50% Fibra retracement level of the recent decline from $ 58.40 up to $ 51.91 below.
There was even a peak above the resistance of $ 56.00, but buyers could not keep gains above the 100-hour SMA. Moreover, it failed to overcome the Fib retracement level to 61.8% of the recent decline from the low of $ 58,40 to $ 51.91 low.
The price has started to fall and is currently trading well below the $ 55.00 level and the 100-hour SMA. More importantly, there is a large contractual triangle formed with a resistance close to $ 55.50 on the hourly chart of the LTC / USD pair.
If the price breaks the triangle support at $ 53.50, there may be a bearish break below the $ 52.00 support. The next major support in this case is around the $ 50.00 level.
On the other hand, if buyers are able to clear the resistance of $ 55.50 and the SMA at 100 hours, there could be more gains above the $ 56.00 level. In short, the litecoin price is approaching the next break or over $ 56.00 or under $ 52.00 in the short term. Below $ 52.00, there is a risk of sharp decline in LTC / USD.
Market data is provided by TradingView.